An investigation into whether the demerger of coffee marketing societies have created or eroded owners wealth in parts of Central Province of Kenya.

Abstract

This study aimed at establishing whether there existed any benefit or erosion of wealth in demerging co-operative societies in Thika, Maragwa and Murang'a Districts of Central Kenya. The practise had spread like a bush tire despite the advise the societies were given by Govemment and professionals. In the contrary worldwide merger of institutions and nations into economic blocks had proved optimal. To achieve the objective, the researcher set out to establish reasons given for their action by perusing through minutes and reports produced by the members at their Annual General Meetings, liquidation reports and audited financial statements 2 years before and after the split. A population of 12 societies in each category of merged and demerged society was established out of which 6 of each group was sampled. To avoid biasness the smallest and the largest in each district was picked. The information was then presented in tables, bar charts and line graph before being statistically analysed. The study concluded that in almost every aspect, from cost savings, higher sales and even payment to members, there was no advantage in splitting the societies.